Our Commitment towards Sustainable Development

In today’s world, where sustainability has become the basis of corporate governance and responsible business practices, chemical companies face enormous challenges. However, we at BorsodChem see these challenges as opportunities.

As one of the largest employers in the region, we have had and have a significant impact on the lives of our employees and the local community throughout generations. It is our top priority to keep our employees’ satisfaction at a constant high level while maintaining maximum occupational health and safety.

Unveiling our Vision: Our Sustainability Strategy

In the third quarter of 2022, we introduced our comprehensive Sustainability Strategy, which represents a key milestone for our Company, taking a systematic step towards achieving our Sustainability Objectives. We have set clear goals, which provide a guideline for our actions and make our progress visible, measurable, and trackable.

By exploiting our seven and a half decades of expertise and resources, we strive to achieve tangible changes in the most significant areas. Our Strategy reflects our core values and policies, demonstrates our commitment to responsible and sustainable business practices, and outlines the steps we are taking to continue our operation in an environmentally conscious, socially responsible and ethical manner.

Every day we work for a more

sustainable chemical industry

Key areas of our Sustainability Strategy focus on reducing our carbon footprint, enhancing social responsibility and the operation of an ethical, sustainable supply chain. We believe that significant results can only be achieved collectively, so we strive to reach our set goals through collaboration and innovation, utilizing the expertise and resources of ours acquired over approximately seven and a half decades. In doing so, we aim to create a long-term, exemplary value in the chemical industry for our owners, customers, employees and the more widespread community alike.

The pathway to real change is never smooth. We are aware that sustainable operations require continuous improvements, which we provide clear and transparent information about, as mutual trust with all of our partners is equally important for us.

AMBITIOUS GOALS, SOLID GROWTH STRATEGY

Our Sustainability Strategy is a comprehensive approach to addressing the most urging sustainability challenges of our time. It also outlines our vision for the future and how we will implement our Strategy striving to offer solutions to the needs of the Earth and future generations. It extends to several key areas, including the reduction of greenhouse gas emissions, the development of a sustainable product portfolio, sustainable procurement, water and environmental protection, labour health and safety, and corporate social responsibility.

We believe it important to focus on these areas, as this enables us to mitigate the environmental impacts and create long-term values for our business partners and society.

Our Action Plan, which helps us achieve our sustainability objectives through an initial 140 programs, is an essential part of our Sustainability Strategy.

BUILDING A SUSTAINABLE FUTURE TODAY

A key component of our Sustainability Management System is the establishment and operation of the Innovation and Knowledge Platform. Additionally, we have set up a separate fund to finance our sustainability investments, allocating 10 million euros every 5 years for this purpose.

PROACTIVELY FOR A CARBON NEUTRAL FUTURE

As an energy-intensive chemical company, reducing greenhouse gas (GHG) emissions is crucial for mitigating environmental impacts and climate change. BorsodChem is committed to medium and long-term reductions of GHG emissions, and to achieve this goal, we continuously update our developed roadmap. We aim to reduce the CO2 emissions of Scope 1 and 2 of our Company by 30% by 2030 compared to 2021. This will lead to the fulfilment of our most important objective, namely, to achieve net zero greenhouse gas emissions by 2050. We are committed to regularly monitoring our progress, reporting transparently on our GHG emissions, and managing our plans flexibly to achieve our goals, thereby supporting the emergence and application of the best available technological and business solutions.

BUILDING A CIRCULAR ECONOMY – ACROSS INDUSTRIES

For establishing a circular economy requires the creation of sustainable products and the use of sustainable raw materials. Our Company focuses on promoting a circular economy, the realization of which is inconceivable without collaboration with our partners and across industries. The first step in implementing a circular economy at our Company is the development of a premium, sustainable product portfolio. It enables significant reductions in our carbon footprint and the amount of waste generated in production and throughout the value chain, as well as conscious resource management. By offering sustainable products to our customers, we can help our partners reduce their own environmental impacts, thus contributing to the establishment of a more sustainable value chain.

SHARED VALUES, COMMON GOALS WITH OUR SUPPLIERS

Our company is committed to sustainable procurement and supply chain management, which includes close collaboration with our suppliers to ensure they meet our sustainability requirements and operate in an environmentally and socially responsible, ethical manner.

Our goal is to reduce the environmental footprint of our supply chain and enhance sustainability by purchasing raw materials from suppliers who share our values. Our goals of sustainable procurement include responsible sourcing, ethical labour practices, and reducing our carbon footprint through sustainable transportation and logistics. We believe that sustainable procurement is essential for achieving our sustainability objectives, and we are committed to cooperating with our suppliers to build a more sustainable future together.

ENVIRONMENTAL PROTECTION – DROP BY DROP

Focusing on reduction of our water consumption, we minimize our environmental impact. Recognizing the importance of responsible resource management, we have set a goal to reduce our water withdrawal from the River Sajó by 10% by 2030. Additionally, we are working to eliminate landfill disposal by 2040 through reducing the amount of waste generated in our processes, implementing further recycling and re-use programs, and exploring and using alternative waste management options.

SAFETY ALWAYS COMES FIRST

We are committed to creating safe working conditions for our employees. To protect the health and safety of our employees, we are implementing a comprehensive occupational health and safety program, with the aim of reducing work-related lost time injuries to zero by 2030. We are enforcing strict safety regulations and implementing training programs to ensure that our employees have the required knowledge and skills, that necessary for safe working.

OUR KEY TO SUCCESS

Our employees are our most valuable resources, so we place a strong emphasis on ensuring and improving their satisfaction and commitment. We offer stable employment in a safe, livable and lovable work environment that encourages professional development. We consider it our most important mission to provide a motivated and highly educated future generation of chemists, taking an active role in reforming professional education.

In addition to providing a safe and healthy workplace for our employees, we promote the culture of diversity, equality and inclusion. We believe that by setting a positive example for our employees and the surrounding communities, we can contribute to a more livable future for everyone.

RESPONSIBILITY TOWARDS LOCAL COMMUNITIES

We appreciate our employees and the communities in which we operate. We have set goals to make a positive impact on them through our CSR initiatives. Our support philosophy focuses on the communities in our region, including providing assistance to disadvantaged groups, embracing education and cultural events.

We are actively searching for innovative and forward-looking solutions by inquiring about our stakeholders’ expectations regarding sustainable business processes. As for partnerships built on trust, transparency, accountability, and sustainable operation is a key factor for success. By joining our forces we can fight together to mitigate the impacts of climate change for a greener and more prosperous future.

In another decisive step, BorsodChem Zrt. committed itself to sustainable operations by joining the group of companies in 2021 that signed the UN Global Compact (UNGC), following the example of the Wanhua Chemical Group.

Under the auspices of the United Nations Commission on Sustainable Development, UNGC signatories and participants are all at the forefront of sustainability development. It is a great honour for the Wanhua Group and thus for our Company to be one of these companies.

For more information, please visit the UNGC website.

The UN Global Compact Ten Principles

The Ten Principles of the United Nations Global Compact:

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.